Wednesday, November 12, 2008

Looking For a Reversal


SkyTrader said...

I see the lines you've drawn, but could you describe why you see a bounce coming first, in some more detail?

To me this looks like an enormous selloff coming - bigger than any we've seen yet. The last histogram bar on the MACD tells me this selloff is picking up momentum, too.

As always I appreciate your ideas and analysis. Keep up the great blog.

Stewie said...

i am expecting this particular test of support to be successful. I will be hunting for reversals very early. it's very rare that a market slices thru support easily. so i am expecting at least this test to be successful. plus negativity is rampant right now and all the ingredients are there for a reversal.

SkyTrader said...

Around 12:50 I thought the breakdown was happening. Then of course the bulls jumped out the gates. Great call Stewie. I ended up playing the Qs long for a decent gain. I wonder how soon they'll sell this bounce though - I still think we head much lower soon.

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